Vertical Alignment Between Hospitals and Physicians as a Bargaining Response to Commercial Insurance Markets

B-Tier
Journal: Review of Industrial Organization
Year: 2018
Volume: 53
Issue: 1
Pages: 7-29

Authors (2)

Ian McCarthy (Emory University) Sean Shenghsiu Huang (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract The relationship between physicians and hospitals has dramatically changed over the last decade, with the employer–employee model supplanting the traditional model of private physicians with hospital admitting privileges. We examine the motivation for this form of vertical integration by considering physician–hospital alignment as a tool to increase bargaining power with private insurers. We find a positive and significant relationship between private insurance concentration on physician–hospital alignment, which is driven predominantly by for-profit hospitals.

Technical Details

RePEc Handle
repec:kap:revind:v:53:y:2018:i:1:d:10.1007_s11151-017-9609-5
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-26